The presidential election is heating up, and with it, the debate over the best economic strategy for America's businesses. Kamala Harris and Donald Trump have both released their plans, promising to slash taxes and boost the economy. But what do these plans really mean for small and big businesses?

Let's start with the basics. Harris's plan focuses on lowering costs for everyday Americans, particularly in the areas of affordable housing, grocery prices, and child care. She also wants to expand tax cuts for middle-class and low-income Americans, while increasing taxes on the rich and large corporations. Her proposed tax cuts for small businesses would provide a $50,000 deduction, compared to the current $5,000. This could make it more affordable for entrepreneurs to launch their businesses and stay afloat in the crucial first year.

On the other hand, Trump's plan is all about business-friendly policies and lower taxes. He wants to reduce the corporate tax rate from 21 to 15 percent and eliminate income taxes on tipped workers. He also plans to remove taxes on Social Security earnings. Sounds good for business, right? But, as finance expert Kevin Thompson points out, "Trump tax cuts will help corporations and support business, while likely making the USA more alluring for business... yet, this does nothing to help offset the major government issues such as deficit spending. This will ultimately create a larger deficit due to bringing in less money."

But what about inflation? Thompson cautions that both plans are inflationary, as they increase the money supply and reduce government take. "Tax credits and tax cuts are wonderful political talking points, but the reality is that anything that does not involve reduced spending or higher taxes is inflationary."

So, which plan is better for businesses? It really depends on their startup costs and long-term tax implications. As financial literacy instructor Alex Beene notes, "When it comes to encouraging small business growth, both campaigns are making significant attempts to gain the votes of those who have either recently started or plan to start a business... While Trump looks to assist in small business development through an across-the-board tax cut, Vice President Harris's approach is to give up to a $50,000 tax credit to new small businesses that could be spread over multiple years or taken in full once the business turns a profit."

In conclusion, the impact of Harris and Trump's policies on businesses will depend on their individual circumstances. While both plans promise tax cuts and economic growth, they differ in their approach. Harris's focus on reducing costs for everyday Americans and increasing taxes on the rich and large corporations could benefit small businesses, while Trump's plan to slash corporate tax rates and eliminate income taxes on tipped workers may appeal to big businesses. Ultimately, the decision will depend on which presidential candidate is best equipped to lead America's economy.

"The Business Impact of Harris and Trump's Policies: A Tale of Two Tax Cuts"

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